Article 23 of the Saudi Real Estate Investment Schemes Law
المادة 23 من نظام المساهمات العقارية · الفصل الرابع: جمعية المساهمين
The article specifies who may call assembly meetings: the licensee, the scheme manager, shareholders representing 10% of the capital, or the Authority on request, with the place of the meeting stated in the notice.
Official text (Arabic)
This article has not been amended since the law was issued.
تنعقد اجتماعات الجمعية بدعوة من المرخص له أو مدير المساهمة العقارية أو مساهمين يمثلون (10%) من رأس مال المساهمة العقارية أو بطلب من الهيئة، ويحدد في الدعوة للاجتماع مكان انعقاده.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 23 explained in plain English
This article sets out how shareholders' assembly meetings are held. A meeting is held on a call or request from one of the following parties:
- The licensee.
- The scheme manager.
- Shareholders representing 10% of the scheme's capital.
- The Real Estate General Authority, on its request.
The article requires that the place of the meeting be stated in the notice.
The most important point of this article for shareholders is that it does not leave the power to call a meeting solely to the licensee or the manager; if shareholders representing 10% of the capital join together, they may call the meeting themselves. What counts here is the percentage of capital they represent, not their number.
The article is linked to Article 22, which makes the assembly up of all shareholders registered in the scheme register, and to Article 24, which makes the licensee, or its representative, chair of the assembly and confirms the right of all shareholders to attend its meetings.
The article does not mention notice periods or any particular form of notice other than stating the place. Anyone who wants to call a meeting together with other shareholders can consult a lawyer specializing in real estate cases to make sure the correct procedures are followed.
Practical example
The licensee of a real estate investment scheme in Makkah had not called any meeting for some time. So a number of shareholders who together own 10% of the capital sent out a notice of an assembly meeting stating the place of the meeting, relying on Article 23.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 23 of the Saudi Real Estate Investment Schemes Law
Who may call a shareholders' assembly meeting?
The licensee, the scheme manager, or shareholders representing 10% of the capital; a meeting is also held at the Authority's request.
Can shareholders call a meeting themselves?
Yes, if they represent 10% of the real estate investment scheme's capital.
What must the notice of the meeting state?
The article requires that the notice state the place of the meeting.
More articles on Shareholders' Assembly
- Article 20
The article allows the licensee, the Authority and the assembly to remove the scheme manager, in accordance with the Implementing Regulations, if the manager abuses their powers or fails to perform their obligations, without prejudice to any penalty.
يحق للمرخص له وللهيئة وللجمعية عزل مدير المساهمة العقارية وفق ما تحدده اللائحة في حال إساءته استخدام صلاحياته أو إخلاله بتنفيذ التزاماته، ولا يخل ذلك بأي عقوبة
- Article 22
The article provides that every real estate investment scheme has an assembly made up of all shareholders registered in the scheme register, and refers the assembly's powers to the Implementing Regulations.
يكون للمساهمة العقارية جمعية تتشكل من جميع المساهمين المسجلين في سجل المساهمة العقارية. وتحدد اللائحة اختصاصات الجمعية.
- Article 24
The article makes the licensee, or its representative, chair of the shareholders' assembly and confirms the right of all shareholders to attend its meetings.
يرأس المرخص له -أو من يمثله- الجمعية، ويحق لجميع المساهمين حضور اجتماعات الجمعية.
- Article 25
The article sets the quorum for shareholders' assembly meetings: two-thirds of the capital for the first meeting, half for the second within 15 days, and the third within 7 days at any percentage with at least three attendees; decisions by majority.
لا يكون اجتماع الجمعية (الأول) صحيحاً إلا إذا حضره مساهمون يمثلون ما لا يقل عن (ثلثي) رأس مال المساهمة العقارية، وإذا لم يتوافر النصاب اللازم لعقد اجتماع الجمعي
- Article 26
The article allows assembly meetings to be held, and their decisions voted on, by the modern technology means that the Implementing Regulations specify.
يجوز عقد اجتماعات الجمعية والتصويت على قراراتها؛ بواسطة وسائل التقنية الحديثة التي تحددها اللائحة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.